Apollo buys majority stake in American Realty for $378M

New company, AR Global, will have Schorsch, Kahane on board

New York /
Aug.August 06, 2015 04:00 PM

UPDATED, 5:35 p.m., August 6: Apollo Global Management is acquiring a majority stake in AR Global Investments, a new company representing a majority of scandal-hit American Realty Capital’s asset management business, Apollo announced. The move will more than double the private equity giant’s real estate assets to around $27 billion.

Apollo, led by Leon Black, is buying the stake with $200 million in cash and $178 million and stock. AR Global will be governed by a newly-created board of directors that will include four American Realty Capital partners — among them Nicholas Schorsch, who will serve as the company’s senior managing director, and William Kahane, who will serve as interim CEO and chief investment officer of AR Global’s real estate activities.

AR Capital currently manages approximately $19 billion in assets across a variety of investment platforms including real estate investment trusts, according to Apollo. The deal includes the Michael Happel-led New York REIT, an Apollo spokesperson told The Real Deal, and will increase Apollo’s total assets under management to $182 billion.

AR Capital’s spin-offs include American Realty Capital Properties, the Glenn Rufrano-led firm now known as VEREIT. That entitity is now completely independent of AR Capital and was not part of the Apollo deal, though it’s also facing backlash for its former ties to the Schorsch empire.

Correction: A previous version of this story said New York REIT was not part of the deal.


Related Articles

arrow_forward_ios
Tutor Perini's Ronald Tutor and Apollo's Leon Black (Credit: (Perini by Brian To/FilmMagic)

Acquisition talks for Tutor Perini dropped because of “volatile market conditions”

Acquisition talks for Tutor Perini dropped because of “volatile market conditions”
From left: 461 Dean Street, One Court Square and 18 Sixth Avenue

Queens tower led Brooklyn-saturated list of outer-borough loans

Queens tower led Brooklyn-saturated list of outer-borough loans
Clockwise from left: 24-02 49th Avenue, 1260 Zerega Avenue and 60 Furman Street (Credit: Google Maps)

Bronx deal cracks list of top outer-borough loans

Bronx deal cracks list of top outer-borough loans
The Daily Digest - Tuesday

WeWork bonds hit low, new LLC legislation went farther than intended: Daily digest

WeWork bonds hit low, new LLC legislation went farther than intended: Daily digest
From left: Jeff Sutton, Brookfield's Ric Clark, and Apollo's Leon Black with the Crown Building

Apollo to provide $800M loan for Crown Building

Apollo to provide $800M loan for Crown Building
A Russian oligarch’s guide: How to hide $20M in a NYC skyscraper

A Russian oligarch’s guide: How to hide $20M in a NYC skyscraper

A Russian oligarch’s guide: How to hide $20M in a NYC skyscraper
National Cheat Sheet: Apollo plans $1B real estate fund, Amazon’s HQ2 selection spurs spurned cities to react … & more

National Cheat Sheet: Apollo plans $1B real estate fund, Amazon’s HQ2 selection spurs spurned cities to react … & more

National Cheat Sheet: Apollo plans $1B real estate fund, Amazon’s HQ2 selection spurs spurned cities to react … & more
Apollo aims for $1B for third real estate fund

Apollo aims for $1B for third real estate fund

Apollo aims for $1B for third real estate fund
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...